I don’t think any crypto exchange will report the transaction to IRS. In that case, is IRS even possible to track my gains?
Try it and let us know
Coinbase/gdax reports.
I made $200 in crypto trading. Do I need to pay tax as well?
*Can* they? Sure. The IRS can audit for any reason they wish. *Will* they? Until someone from the exchanges reports it, or until an exchange is investigated and someone queries all the users, or until you do something dumb that advertises your crypto gains, unlikely. I’d report my gains, pay taxes, and keep going. Just my opinion.
The IRS has hired some firms specifically to track crypto movement to track down violators. It’s pretty fucking easy if you were in BTC. I listened to one guy doing it and in minutes just from an address he figured out the name of the person and all the details of all transfers.
Links, or it didn't happen
Nice to meet you Mr. IRS Agent.
Yes. Just pay Uncle Sam his share and everyone stays happy. The IRS wants a piece of the pie too. Exchanges will eventually succumb and hand out the trade history. Not worth the risk.